28.          Appraiser’s Fees BASED ON PENDING SALE PRICE

 

Question:

I’m aware that an appraiser’s fee cannot be based on the amount of the appraiser’s value conclusion.  However, does USPAP allow an appraiser’s fee to be based on the amount of the owner’s estimate or a pending sale price of the subject property?

 

Response:

USPAP does not prohibit an appraiser’s fee from being based on an owner’s estimate, a pending sale price of the subject property, loan amount, or any other factor outside the appraiser’s control.

 

 

This is in contrast to a fee based on the amount of the appraiser’s opinion of value, which is within the appraiser’s control.  A fee arrangement based on the appraiser’s opinion of value violates the ETHICS RULE.

 

 

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USPAP 2008–2009 Edition
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